The Institute of Chartered Accountants of India (ICAI) prohibited Chartered Accountant’s from promoting their association with Teaching Activities/ Coaching Business through Hoardings, Posters, Banners etc. As per ICAI rules, a practising CA (Chartered Accountant) shall not engage in any business or occupation other than the profession of accountancy.
V. Sagar, Secretary of ICAI wrote in an announcement dated May 18th,2017 that, members are advised to abstain from advertising their association with Coaching Business /teaching activities through hoardings, posters, banners and by any other means, failing which they may be liable for disciplinary action, as per the provisions of Chartered Accountants Act, 1949 and Rules /Regulations framed thereunder.
Regulation 190A of the Chartered Accountants Regulations, 1988 provides that a chartered accountant in practice shall not engage in any business or occupation other than the profession of accountancy, except with the permission granted in accordance with a resolution of the Council.
In 2006, the Chartered Accountants Act, 1949, was amended, permitting CAs to advertise, subject to guidelines framed by the ICAI council. CAs can approach both the print and electronic media to advertise their services. And, they can advertise both in their individual capacities as also in the name of their firms.
However, the Council has passed a Resolution under Regulation 190A granting general permission (for private tutorship, and part-time tutorship under coaching organization of the Institute) and specific permission (for part-time or full time tutorship under any educational institution other than Coaching organization of the Institute). Such general and specific permission granted is subject to the condition that the direct teaching hours devoted to such activities taken together should not exceed 25 hours a week in order to be able to undertake attest functions.
Further in the announcement, the Secretary mentioned that, “the broad purview of Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949, an advertisement of Coaching /teaching activities by a member in practice may amount to indirect solicitation, as well as solicitation by any other means, and may therefore be violative of the provisions of Clause (6) of Part I of the First Schedule to the Chartered Accountants Act, 1949”.
It also added that “Subject to the above prohibition, such members may put, outside their Coaching /teaching premises, sign board mentioning the name of Coaching/teaching Institute, contact details and subjects taught therein only. As regards the size and type of sign board, the Council Guidelines as applicable to Firms of Chartered Accountants would apply”.
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